INTRODUCTION:

The PFC has been established under the State Financial Corporation Act,1951,for providing medium and long term loans to small and medium scale industrial undertakings in the state of Punjab under various schemes.

It generally grants term loans for creation/acquisition of fixed assets like land ,building, plant and machinery, provides guarantee against deferred payments for the purchase of capital goods and offers underwriting facility on issue of stocks and shares to companies. The Corporation also provides financial assistance for setting up of Hotels, Nursing Homes/small hospitals, IT Industries, development of industrial estates and purchase of transport vehicles etc. The Corporation has sanctioned (effective) and disbursed loans of Rs.1096 crores and Rs.1060 crores respectively upto 31st March 2003 more than 13596 units. The break-up is as under:-

 
Amount : (Rs.in crores)
Percentage
Small Scale Sector 1052
96.0
Other than small scale
sector
44
4.0
Total: 1096
100.00
* 1 Crore=10 millions

The performance of Corporation in the key areas of operation for the last two financial years is under:
(Rs.in crores)

 

2002 -2003

2003 -2004

2004 -2005

Sanction (Gross) 41.50    
Disbursement 39.65    
Recovery 111.04    

The Corporation has a decentralized setup comprising of nine district offices having power to sanction and disburse loans upto Rs.30 lacs. The loans above Rs.30 lacs and upto Rs.240 lacs are processed at Head Office. The Corporation may also finance cases more than Rs.240 lacs with the permission of SIDBI on case to case basis.

PURPOSE OF THE LOANS:
The Corporation grants loans for setting up new industrial concerns, expansion and modernization of existing concerns and rehabilitation of sick industrial concerns, which have been assisted by it. The loans are generally granted for creation of fixed assets such as land, building and machinery . However, it also grants composite loan for meeting working capital requirements to new tiny and small units with project cost upto Rs.200 lacs under Single Window Scheme. The Corporation also associates itself with Punjab State Industrial Development Corporation (PSIDC), commercial banks and other Financial Institutions for financing industrial project costing upto Rs,.12 crores.

ELIGIBILITY CRITERIA:
The public limited companies, private limited companies, cooperative societies, partnership firms, sole-proprietorship firms of HUF concerns engaged in, or proposing to be engaged in any one or more of the following industrial activities in the State of Punjab, are eligible for financial assistance from the Corporation.

ACTIVITIES ELIGIBLE:
Besides providing financial assistance for industrial units, engaged/to be engaged in manufacturing ,processing, preservation, packaging of a product, PFC also provides assistance for the following activities:-

TOURISM : Hotels ,restaurants, motels ,tourist bungalows, tourist service agencies, cultural centers, convention centers, amusement parks, health clubs, etc.

HEALTH : Hospital, nursing homes, poly-clinics, diagnostic laboratories & for purchase of electro medical equipment’s.

TRANSPORT: Vehicles for transportation of passengers goods, ropeways lifts, tourist coaches etc.

SERVICE ESTABLISHMENT - Repair & maintenance workshops computer centers, weighing bridge, communication facilities, Fax, E-mail, Telecommunication, Public Call, Office etc. etc.

R & D Engaged in providing technical know-how, consultancy for promotion of industrial projects/products.

INFRASTRUCTURE: - To set up industrial parks, estates, areas, construction, maintenance, development of roads, bridges etc. Earth moving equipment, tube well boring, zigs and tools.

MARKETING: Construction / Arrangement of sales outlets of for renovation of existing sales, outlet ,purchase of mobile sales van.

AGRO- Tissue culture, floriculture, pisciculture, poultry and hatchery.

EXPLANATION:
a) The expression "Processing of goods" includes any art of process for producing, preparing of making an article by subjecting any material to a manual, mechanical chemicals electrical or any other like operation (s). However , the industrial companies/concerns with paid up capital, equity and free reserves exceeding Rs.10.00 crores are not eligible for financial assistance.

b) The above list is only illustrative and by no means exhaustive and PFC looks forward to assist technically and financially sound new industrial projects.

LIMIT OF LOANS:
The Corporation provides loans upto the following limits fixed under the SFCs Act,1951:

(Rs.in lacs)
- Public limited company/private limited company/co-operative society 240
- Partnership/sole proprietorship/others 120
- The Corporation in participation with the Punjab State Industrial Development Corporation, Commercial Banks and All India Financial Institutions, finances projects costing upto Rs.12 crores.

RATE OF INTEREST:
The Corporation is charging interest at the following rates:-

(a) Loans upto Rs.0.50 lacs 11.75%
(b) loans above Rs.0.50 lacs  upto 2.00 Lacs 12.25%
(b) loans above Rs.2.00 lacs  upto 25.00 Lacs 13.25%*
(b) loans above Rs.25.00 lacs  13.75%*
(c) Under TDM & ISO-9000 Schemes 13.00%*
(d) For non-SSI Units 15.50%*

* 1% Rebate on timely payment

NOTE: The above rate of interest is subject to change and exclusive of interest tax & after providing rebate of timely payments.

SECURITY:
Loans are advances against first registered mortgage of fixed assets of the industrial concerns. The Corporation also accepts personal guarantee of the partners of the concern or of the directors in case of a limited company wherever it is considered necessary. It may also accept when it is considered necessary, the immovable properties in the State of Punjab owned by the individual partner (s) or by the members of the Hindu Undivided family, as the case may be, as on addition security.

Loans for the purchase of generating sets and transport vehicles are granted against hypothecation of the assets purchased with the financial assistance, In case of transport vehicle the loanee or his guarantor has also to offer immovable property in the State of Punjab as Security in addition to hypothecation of the vehicle.

Loans under Single Window Scheme are granted against first charge on the entire assets of the concern both immovable and movable and collateral security of immovable property equivalent to 125% working capital loan. In case of loan to small scale units set up in rented premises, hypothecation of plant & machinery and other equipment and personal guarantee of promoters is obtained . Further Third party guarantee of reputed, resourceful person(s) or collateral security is to be obtained.

PERIOD AND MODE OF REPAYMENT:
Period of repayment of loan is upto 10 years However, the exact period of repayment in each case is fixed keeping in view the repayment capacity of the concern. The interest and installments of principal are to be repaid quarterly further, moratorium in repayment of principal is provided for one to two years.

PROCEDURE FOR SEEKING FINANCIAL ASSISTANCE:
An Entrepreneur/industrial concern interested in seeking financial assistance from the Corporation is required to applied or contact the Head Office or any of the District Offices of the Corporation for requisite application forms. The entrepreneur is required to give brief information of the scheme. constitution and the amount of loan required while requesting for application forms. The application forms are supplied free of cost. The Corporation ,however, charges one time non-refundable fee from applicants seeking assistance for more than Rs.5.00 lacs for the processing of loan applications. The borrower will have to pay the processing fee @0.25% of the loan amount applied for. The amount so payable shall be deposited by bank draft drawn in favour of the Punjab Financial Corporation in two installments as under:-

a) 50% of the processing fee is to be deposited alongwith the loan application.

b) Balance 50% of the processing fee is to be deposited with 15 days from the date of issue of the sanction letter.

The processing fee is non-refundable. There is no processing fee of the loan upto Rs.5.00 lacs.

The applicant is required to fill in the forms and comply with formalities, after going through the check list which is supplied with the application forms. The check list enumerates the documents/information which should be enclosed with the application forms. The Corporation assists the applicant in filling up the application forms and renders any other related guidance.

INFORMATION REQUIRED WITH THE LOAN

APPLICATIONS:
i) Required loan application forms in duplicate, duly filled in alongwith processing fee mentioned above.

ii) Regarding Promoters.

a) Detailed bio-data of the promoters, age, attested photographs, educational and provisional qualifications, past experience and experience obtained in the particular industry, residential address and relationship with other promoters.

b) List of total movable and immovable assets owned by each promoter and the liability there against alongwith proof of assets.

c) Income tax and wealthy tax details of the last three years specifying those assessed and paid alongwith the copies of assessment orders/returns filled.

d) Credit worthiness report from the bankers for all promoters

iii) Sister Concerns:-

a) Name & brief history of other concern(s) in which the promoter(s) are interested.

b) Copies of the audited balance sheets and profit and loss accounts for the last three years for each of the above mentioned sister concern(s)

c) Copy of the instructions issued to the bankers to give full information, above your concern on request from the Corporation.

iv) Regarding Govt. approvals:-

a) Certified copy of the registration as small scle industrial unit from District Industries Center or registration with Secretariat of Industrial Development, Government of India, for other than small scale units.

b) Memorandum and Articles of Association (if company "s case)

c) Certified copy of the certificate of incorporation ( if company’s case).

d) Certified copy of partnership deed (if partnership concern).

e) Certified copy of registration certificate issued by the Registrar of Firms on Form A & C (if partnership concern).

f)Registration with the Tourism Department, Punjab and license for the earning house (incase of hotel industry).

g) Permission /Licensee should be produced from the competent authority (in case of textile/drugs/food /etc.unit).

h) Details of the power requirement and tie up arrangements with PSEB.

i) Effluent Treatment Scheme/Permission from Pollution Control Board.

j) Permission from Director, Housing & urban Development Punjab, Chandigarh, in respect of units to be located in Patiala and Ropar Districts.

V) The Proposal:-

a) Cost of project including cost of land, building, machinery miscellaneous items, preliminary and [preoperative expenses, margin money for working capital and means of financing.

b) Certified copy of the recent date balance sheet.

c) Certified copies of the audited balance sheets and profit and loss accounts for the last three years (if existing concern).

d) Details of the existing building, if any.

e) Details of the existing machinery complete with name, specifications, year of purchase, price and make /supplier (if any).

f) Details of land alongwith certified copy of sale deed of land underneath the factory building (The land should be in the name of the sole-prop/firm/company). Details of land in the prescribed Performa should be submitted.

g) Details of the building proposed to be constructed alongwith the building plant duly approved by the Competent Authority of the area.

h) Details of the machinery proposed to be purchased complete with name, specifications, price and make/supplier alongwith the basis of selection of the machinery, supplier like catalogues of each machinery, name of the concerns to whom machinery have been supplied with name and complete addresses.

i) Three quotations in respect of each item of plant and machinery proposed to be purchased.

j) In case of imported machinery, a copy of capital goods clearance alongwith the basis of selection of machinery suppliers and agreement made with them be supplied.

k) List of Senior Persons to be engaged by the concern like Technical Administrative and Managerial Persons and organization chart relating to the proposed management structure of the concern, be provided.

l) Statement of working capital requirements for three years.

m) Details of various raw materials alongwith name, specifications, consumption, present price and name of supplier.

n) Details of specification of the product/product mix proposed to be manufactured with installed capacity of each and basis determining the installed capacity of the product.

o) Details of the manufacturing process.

p) Justification of improvement of working results in case of expansion, diversification and replacement project,

q) Details of profitability and case flow statement of the scheme. for ten years.

r) Details of the proposed selling arrangements.

s) In case of collaboration for technical know-how with outside agencies, furnish the details of their reputation, past experience in the proposed line and copy of the proposed agreement.

t) Marketing and development scope of the proposed project, specifically and regained alongwith demand and supply data, existing capacity, users of the proposed product and their requirement. A copy of the Market Study conducted in connection with the project be submitted.

u) In case of execution of projects on turn key basis by outside agency, furnish the details of their reputation ,past experience, list of similar projects executed, qualifications and strength of its staff and a copy of proposed agreement.

PROJECT APPRAISAL SCRUTINY OF LOAN APPLICATIONS AND ARRANGING INSPECTION:
Loan application for assistance upto Rs.30 lacs are processed by the district offices in respect of the districts within their jurisdiction Loan applications for assistance more wherever necessary and preliminary discussions are held with the promoters for conceptualization of the project. The applications for loan above Rs. 30 lacs are processed at Head office.

After preliminary scrutiny of loan application, the case is placed before the Screening Committee which is normally held twice a month, which discusses the case with the promoters and satisfied itself regarding viability projects and the norms of the appraisal . Thereafter, the Corporation arranges appraisal of the project. Efforts are made to ensure that applications are processed expeditiously, information’s sought form the parties Machinery loading chart in order to justify the plant and machinery proposed to be purchased.

Various aspects of project appraisal are discussed during appraisal.

A) TECHNICAL APPRAISAL:-

- Product mix ,manufacturing process and installed capacity 

- Technology,

- Location/site selection and infra-structural facility.

- Size of the plant and the project.

- Building requirement

- Selection and procurement of plant and machinery.

- Raw material cost and availability.

- Implementation schedule/gestation time.

B) COMMERCIAL AND ECONOMIC APPRAISAL:-

- Demand data

- Supply data

- Distribution

- Pricing, government policies and permission

- Competition

- Employment generation

- Promoters, manpower and soundness of the proposal

- Appraisal of management and management problem

C) FINANCIAL APPRAISAL:-

- Capital cost of the project and means of financing

- Financial projection like profitability estimates, cash flow and sensitivity analysis.

- Analysis of the working of sister concern, cash flow and working of the existing concerns for the last three years.

- Analysis of various rations and break even point, IRR and NPV etc.

FEW SCHEMES BEING OPERATED

1. COMPOSITE LOAN SCHEME:

(a) Eligibility Borrowers: Artisans Village & Cotton industries and small scale industries in tiny sector.
(b) Purpose  : Assistance  for equipment and working capital and also for work sheds.
(c) Norms: Loan upto Rs. 5 lac is given  under the scheme with nil promoters contribution and repayment period is between 3 to 10 years with a moratorium period of 12 to 18 months..

2. SINGLE WINDOW SCHEME  :
a) Eligible Borrowers:
Entrepreneurs setting up  new projects in SSI/Tiny Sector as well as to existing units for modernization, technology-upgradation and socially viable sick units undertaking rehabilitation scheme.
b) Purpose: To provide both term loan for fixed assets and loan for working capital through some agency.
c) Norms: A total project outlay including total working capital requirement should not exceed Rs. 200.00 lac under the scheme.

3. MAHILA UDYAM NIDHI SCHEME:
a) Eligible Borrowers:
Women entrepreneurs for setting up new projects in tiny/small scale sector and rehabilitation of viable sick units excluding transport operators.
b) Purpose : To meet th gap in the equity.
c) Norms: The capital cost of project including margin money for working capital not to exceed Rs. 10.00 lac. The soft loan limit is 25% of the cost of project subject to maximum of Rs. 2.5 lac per project. The soft loan will carry service charges @ 1% PA.

4. TRANSPORT INDUSTRY:
a) Eligible Borrowers:
Small road transport operators.
b) Purposes: For purchase of truck/bus/auto rickshaw, mini bus for transportation of goods or passengers by road. Secondhand vehicles are not eligible for assistance.
c) Norms: The quantum of loan is need based (maximum 20 vehicles per operator including existing vehicles).

5. Self-employment for Ex-Servicemen:
a) Eligible Borrowers:
Ex-servicemen (including windows of ex-servicemen ) sponsored by Director General Re-settlement, Ministry of Finance, Govt. of India.
b) Purpose:
For setting small industrial projects including service industry and satisfied transport activities which are eligible for financed as per ISI norms.
c) Norms:
Cost of project not to exceed Rs. 15.00 lac. The assistance will include soft loan to meet the gap in equity to Rs. 2.25 lac per project. Soft loan will carry service charge @ 1% PA during the moratorium period. Therafter, interest @ 6% PA.

6. NATIONAL EQUITY FUND SCHEME:
a) Eligible Borrowers:
Small entrepreneurs for setting up new projects in tiny/small scale sector and rehabilitation of potentially viable sick units. The sick existing tiny and small scale industrial unit and service entrepreneurs include all industrial units and service industry except road transport operator.
b) Purpose: To meet the gap in minimum prescribed promoters contribution and or equity.
c) Norms: Cost of project not to exceed Rs. 50.00 lac. Soft loan limit is 25% of the cost of project subject to a maximum of Rs. 10.00 lac per project. The service charge on soft loan will be 5%. The repayment period for soft loan is 7 years including moratorium period of three years.

7. EQUIPMENT REFINANCE SCHEME:
a) Eligible Borrowers: Sole proprietorship, partnership, co-operative Societies, Private & Public Ltd. Companies.
b) Purpose: The assistance of the scheme would be available for acquiring capital goods, equipment (imported/indigenous) not related to any specific project at 22.5% margin. The loan is repayable in three years depending upon repayment capacity of borrowers.
c) Norms: The unit should have been in operation for minimum 4 years (for automobile and electronic units minimum period is two years) and earned profit/declared dividend during the two years proceedings financial year and should not be in default with any financial institution.

8. SCHEME FOR ASSISTANCE FOR MARKETING :
a) Eligible Borrowers: Sole proprietorship, partnership, cooperative Societies, Private & Public Ltd. Companies.
b) Purpose: For setting up of new outlets of existing concerns for marketing products of small, cottage and village industry.
c) Norms: The cost of project should not exceed Rs. 25.00 lac including land, building, showroom facilities, office equipment, margin money for working capital and reasonable expenses to be incurred on publicity. the proposed sale outlet shall mainly stock and sale the products of small, cottage and village industry.

9.SCHEME FOR ASSISTANCE TO SCHEDULED CASTES/SCHEDULED TRIBES ENTREPRENEURS:
a) Eligible Borrowers:
SC/ST persons.
b) Purpose: Assistance for purchase of equipment and or making capital, sole proprietor as well as partnership.
c) Norms: The maximum limit of loan under the scheme is Rs. 15.00 lac.

10. SCHEME OF TECHNOLOGY DEVELOPMENT & MODERNIZATION (TDM):
a) Eligibility Borrowers:
Sole proprietorship, partnership, co-operative Societies, Private & Public Ltd. Companies.
b) Purpose:
Assistance under the scheme would be available for meeting the expenditure on purchase of capital equipment, need based civil works and acquisition of additional land. Acquisition of technical know-how, designs, drawings and fashion forecast where relevant to specific product group. Upgradation of process technology and products with thrust on quality improvement comparable with acceptable domestic and international standards. Improvement in packaging. Cost of TOM and acquisition of ISO 9000 series certification. Need based additional incremental margin money for working capital.
c) Norms: Total project outlay not to exceed Rs. 100.00 lac preliminary and pre-operative expenses shall not be covered as part of the cost of project. The prevailing rate of interest is 13.00% with 1% Rebate on timely payments.

11. GENERAL LOAN SCHEME:
a) Eligible Borrowers:
All forms of organizations in the small scale sector (i.e. proprietary, partnership, company, co-operative society etc). For infrastructure development-all forms of organizations such as public/(p) Ltd. Cos. partnerships, sole proprietary, municipalities.
b) Purpose: For setting up new small scale units or expansion, modernization, diversification, etc. of existing units and for all activities eligible for assistance under the scheme including professional practice/consultancy venture and service sector units such as tourism related activities/hospitals/nursing polyclinics/hotels/restaurants/marketing and industrial infrastructural projects.
c) Norms: The cost of project in respect of service sector unit not to exceed Rs. 10.00 crore and in case of manufacturing units Rs. 12 crores.

12. SCHEME FOR ACQUISITION OF ISO 9000 SERIES:
All existing units under SSI sector having good record for past performance and sound financial position, provided the unit is in operation for a period of atleast 4 years and have earned profits during preceding two financial years are eligible under this scheme for the acquisition of ISO 9000 series.
Expenses of consultancy, documentation, audit certification, equipment and other instruments required would be taken into account for determining the directly/indirectly or and have plans to manufacture product for export under this scheme. The concessional rate of interest @13.00% with 1% Rebate on timely payments is charged under this scheme.

13. SCHEME FOR TEXTILE INDUSTRY UNDER TECHNOLOGY UPGRADATION:
Eligible Borrowers:
Sole proprietorship, partnership, co-operative Societies, (P) & Public Ltd. Companies in the textile and cotton ginning and pressing industries, The textile industry comprises of the following activities:

Silk reeling and twisting.

Wool scouring and combing.

Synthetic filament yarn texturising, crimping and twisting

Spinning.

Viscose filament yarn (VFY).

Weaving, knitting including non-wovens, fabric embroidery and technical textiles.

Garment/made up manufacturing.

Processing of fibres, yarns, fabrics, garments and made-ups.
b)Purpose: Assistance under the scheme would be available for meeting the expenditure on:
Purchase of capital equipment, need based civil works and acquisition of additional land.
Acquisition of technical know-how, designs, drawings and fashion forecase where relevant to specific product group.
Upgradation of process technology and products with thrust on qualify improvement comparable with acceptable domestic and international standards.
Improvement in packaging.
Cost of TQM and acquisition of ISO 9000 series certification.
Need based additional/incremental margin money for working capital.
c) Norms: To provide encouragement to textile industrial units (including units in the Cotton Ginning and processing sectors upgradation and to modernize their production facilities. Assistance is available for installation of specified types of machinery and for eligible activities in a new unit or in an existing unit by way of replacement of existing machinery and/or expansion. New units must set up their entire facilities only with the appropriate eligible technology. A unit can undertake one or more activities listed by GOI. However, multiple activities can be undertaken only in an integral manner i.e. by way of forward or backward integration. It is however, clarified that weaving/knitting and garment manufacturing or weaving/knitting and processing or garment manufacturing and processing will be considered and integral activities.
The scheme would be in operation for a period of five years from April 1, 1999 to March 31, 20004.
The scheme envisaged interest incentive of 5% and/or cover for exchange rate fluctuation upto 5% p.a. on the loans availed by small scale units from primary lending institutions. Refinance is availed from SIDBI is not compulsory. However, where refinance is availed form SIDBI such proposals shall conform to norms and parameters stipulated by SIDBI, in addition to the guidelines prescribed by Govt. of India.
Details including the list of machinery are furnished in Technology Upgradation Fund Scheme booklet issued by GOI.

14. QUICK FINANCE SCHEME:
This scheme is meant to serve the existing business concerns and the concern financed by the Corporation in the past by providing Quick Finance by way of working capital facility upto Rs. 50.00 lacs and term loan facility upto Rs. 240 lacs.

ELIGIBILITY CRITERIA:

1. The unit should be in production for period of three years.

2. The unit should be making book profit i.e. profit tax for 2 out of last 3 years.

3. The unit should have minimum earning per share more than two in case of limited companies or positive cash accruals in case of proprietary or financial concerns ; and

4. The unit should be regular in repayment of dues of financial institutions.

5. Fees

Cost of the forms of application
Rs.100 /-

Processing fee

0.5% of the assistance applied for

On acceptance of the simplified form, the process of sanction under the above scheme shall be completed within 7 days and the disbursement can start immediately thereafter depending upon the requirements of the concern. No application after receipt shall take more than 15 days.

15. SCHEME FOR SHORT TERM ASSISTANCE:
The availability of adequate funds for the smooth running of the industrial unit is most vital for its growth in the small and medium scale sectors . The scheme for short term financial assistance with the following main features has been given as under:-

ELIGIBILITY CRITERIA:-

a) The scheme is meant for small scale unit and medium scale industrial units financed by the Corporation.

b) The units financed by the Corporation are in existence for a minimum period of three years. having earned profits during the last two years and not in default with PFC/Bank/other financial institutions.

c) The assistance above Rs.10 lacs and upto Rs.50 lacs per unit shall only be considered.

ELIGIBLE LOANS

The short term loan will be given for the purchase of raw materials and imported materials in bulk or to meet the peak season demand of consumable and for execution of specific orders and/or to meet the short term requirements of the eligible concerns.

a) RATE OF INTEREST: 17.5% per annum.

b) REPAYMENT PERIOD: The repayment period varying between 8-11 months supported by advance cheques.

c) SECURITY:
i) The personal guarantee of the directors/promoters

ii) Extension of charge on the existing assets and also collateral security if required so that total assets mortgaged with the Corporation should be twice the amount of existing and proposed loans. The margin on security shall be retained at 50% minimum in favour of the Corporation for the proposed short term assistance.

d) COMPUTATION OF SHORT TERM LOANS: The proposed term loan shall be restricted to 25% of the projected level of sales minus assistance for working capital sanctioned by the commercial bank subject to a maximum of Rs.50 lakhs.

e) PROCESSING FEE: 0.5% of the assistance applied. In addition 1% shall be charged as up-front fee if the assistance is sanctioned and accepted by the borrower. The assistance sanctioned to the concern shall be reviewed annually for which fee of Rs.5,000/- shall be charged on renewal basis.

f) GENERAL CONDITIONS:

a) The disbursement of the loan shall be made through a online account maintained with the principal bank of the concern.

b) The bank of the concern shall be associated while deciding the maximum limit of the short term loan and a copy of the sanction and conditions of sanction shall be conveyed to the Principal Banker of the concern.

NOTE: The financial parameters are as at present and subject to change.

g) DEBT EQUITY NORMS:-

a) For small scale units:-

I) Loans upto Rs.10.00 lacs

3:1

ii) Loans above Rs.10.00 lacs

2:1

b) Other than small scale units

1.5:1

16. SCHEME FOR FINANCING COMMERCIAL COMPLEXES:

a) Objective:
The objective of the scheme is to provide financial assistance for establishing Commercial Complexes, Showrooms, Sales, Outlets, Departmental Stores and Shopping Malls etc

b)  Eligibility Criteria: Sole Proprietorship firms, Partnership concerns and Companies fulfilling the following conditions :-
(i) The land and building should be in the name of  Sole Proprietor, Partners or Company. 
(ii) Location of Commercial Complexes, Showroom etc should be within the approved area of the respective competent authority.
(iii) Assistance for renovation for the existing commercial complexes may also be considered under the scheme. 
(iv) Proposal where land is on lease are not eligible.
(v) Minimum Promoter's contribution shall be 40%.
(vi) Minimum Collateral Security shall be 30%.

c)  Terms of Assistance
(i) Interest Rate : As applicable in case of SSI units.
(ii) Repayment Period : The loan shall be repayable in 8 / 10 years including moratorium period of 12 months. 

17. SCHEMES FOR FINANCING WARE HOUSES / PLINTHS

a) Objective: This scheme is aimed at providing financial assistance for construction of Warehouses / Plinths for storage of food grains in the State.

b)  Eligibility Criteria: Sole Proprietor / Partnership concerns  fulfilling the following conditions :-
(i) The land is owned by promoter. 
(ii) All those concerns which proposes to built ware houses under Guaranteed Land Scheme of PSWC, PUNSUP, MARKFED, PAIC or any other Government Agency.
(iii) Promoter's contribution shall be 40%.
(iv) Collateral Security shall be 50% to 60% of the amount of term loan.

c)  Terms of Assistance
(i) Interest Rate : As applicable in case of SSI units. (Subject to change)

(ii) Repayment Period

a)   8 - 10 years in case of godowns
b)   3 - 5 years fin case of plinths
c)   The moratorium period will be 12 months or upto the date of receipt of first rent which ever is earlier.

18. SCHEMES FOR ASSISTANCE TO INFORMATION TECHNOLOGY AND SOFTWARE DEVELOPMENT SECTOR

a) Objective: To fulfill financial requirements for the Information Technology and Software Development in the State.
b) Eligibility Criteria: All new Industrial units are eligible for assistance under the scheme from the corporation. However, preference will be given to the units established by persons with sufficient experience, expertise and exposure in software development.
c) Terms of Assistance
(i) Interest Rate : Rate of interest as applicable to General Term Lending Scheme.
(ii) Repayment Period : Repayment period not exceeding 5 years including the moratorium period of  12 months where the premises are owned by the promoter and six months in case of rented premises or premises on lease.

d) Promoter's Contribution: Promoter's contribution shall be 30%

POWERS TO SANCTION LOANS:

i) Executive Committee upto Rs.125.00 lacs.

ii) Board of Directors above Rs.125.00 lacs

MERCHANT BANKING ACTIVITIES
The Corporation is registered as Category ‘I’ Merchant Banker with the securities and Exchange Board of India (SEBI) and sponsoring member of over the counter Exchange of India (OTCET) .The Corporation offers facilities like public issue management, project counseling, merchant banking appraisal, participation in bought out deal, under-writing of Public Issue, Bills Discounting etc.

In addition, it provides quick and timely need based finance to the existing profit making concerns with good track record. The corporation offers the following innovative schemes for concerns satisfying the eligibility criterion:-

i) The units are in small scale/medium scale sector.

ii) Units are in existence for minimum three years and having earned profits during the last two years.

iii) Regular in repayment /payment of dues of Financial Institutions.

PFC-LINE OF CREDIT SCHEME:
The annual plan of industrial concern for term credit for purchase of machinery/equipment can be sanctioned in the form of Line of Credit, while disbursement can be availed on identification/selection of equipment/machinery at a later date. This scheme is meant for the existing financed units by the Corporation. The term finance available under the scheme shall be repaid within a period of four years, rate of interest shall be one percent above the normal rate.

DISBURSEMENT OF LOANS:
After the loan is sanctioned by the competent authority a letter of sanction is issued to the loanee concern. The letter of sanction contains the general terms and conditions which the concern is required to comply with before the disbursement of the loan.

OFFICES OF PFC
HEAD OFFICE : PUNJAB FINANCIAL CORPORATION,
95-98,BANK SQUARE, SECTOR 17-B.,
CHANDIGARH .
PHONE: +091 - 172 - 2708420, 2709295, 2709296, 2709298,  2704805, 2702425
FAX: +091 -172 - 2709297
Email: pfcchd@sify.com

 

Website : http://punfincorp.nic.in

DISTRICT OFFICES: PHONE

1. PUNJAB FINANCIAL CORPORATION, 504217,22504217
PLOT NO. 2, DISTT. SHOPPING CENTRE,
RANJIT AVENUE,AMRITSAR.

2. PUNJAB FINANCIAL CORPORATION, 2212746, 2217806
A-6, CIVIL LINES, BATHINDA

3. PUNJAB FINANCIAL CORPORATION, 220060, 225753
DISTRICT INDUSTRIES CENTRE,
MALWAL ROAD, FEROZEPUR

4. PUNJAB FINANCIAL CORPORATION, 2253419
SCO 6,INDUSTRIAL DEVELOPMENT
COLONY, JALANDHAR ROAD, HOSHIARPUR.

5. PUNJAB FINANCIAL CORPORATION, 2227414, 2242654
MAIN GARHA ROAD,
ABOVE BANK OF INDIA, ,JALANDHAR

6. PUNJAB FINANCIAL CORPORATION, 2538502, 2539312
ABOVE BANK OF MAHARASHTRA,
LINK ROAD, LUDHIANA.

7. PUNJAB FINANCIAL CORPORATION, 2362357, 2362494
BUILDING NO.1,1ST FLOOR,
DUKHNIVARAN ROAD,
NEAR SANDHU HOSPITAL,
PATIALA.

8. PUNJAB FINANCIAL CORPORATION, 2214055-56
SCF 41, 1ST. FLOOR, PHASE IX,
MOHALI DIST. ROPAR.

9. PUNJAB FINANCIAL CORPORATION, 2-34374, 2-36556
DC OFFICE ROAD,
SANGRUR

 

 

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